Government spending 'well above projections' -MLP
Opposition leader Charles Mangion, the Labour spokesman on finance, has demanded an explanation as to how the financial deficit and public spending rose well above Budget projections in the first half of this year.
NSO figures issued last week showed the deficit growing by €80 million to €256 million. The public debt increased by almost €180 million when Budget projections provided for an increase of €110 million for the whole year.
Dr Mangion noted that recurrent expenditure was up 13.5%, which was well above economic growth. In the Budget, the government had said it expected recurrent expenditure to rise by €66.3 million for the whole of 2008 but in just six months it was by more than €123 million, Dr Mangion said.
Under the heading “projects and initiatives” the government had projected an annual spending increase of €50 million, yet this was already up to €93 million.
He said the government also needed to explain how a projected increase of €5million in spending on salaries had been exceeded three times over in six months.
Were such increases the result of incompetence, or had there been total disregard ahead of the general election?
Dr Mangion asked whether the fact that the government appeared to have withdrawn its promise to cut income tax was a case of deception, or whether it was the case that public finances were not on the firm footing which they were made out to be before the elections
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A.Vella
Jul 28th 2008, 21:20
Funny, you all referred to me and then pointed the artillery towards the goverment's incompetency... I never claimed that the current legislature is working efficiently, I just said that the MLP keeps being inconsistent and just points to problems without a coherent solution or at least explaining the facts as they truly are, and you all seem to agree since no one contradicted me on this point. Point Proven.
Is it automatic that anyone criticising MLP must be a PN diehard?
M. Buhagiar
Jul 28th 2008, 18:58
@A .Vella
The solutions we`ll leave them to Mr. Par Idejn Sodi. He`s the PM right ??? ( Or is there somebody else doing his job??) .Thats what you NP apologists say whenever Labour offers a helping hand but for now we`ve only saw stubborness from the Government so....
After all we do have a strong economy right always according to Mr. Par Idejn Sodi and the ex Major of B`Kara ?!!
When the time comes my friend, dont worry , the PRODIGY and his team will come up with solutions as they are already doing but... oh..... I forgot ..... we have the best Govt from all the EU contries!!!
U HALLINA MAN!!
I Abela
Jul 28th 2008, 18:50
@ J. Dalli. Couldn't have explained it better my friend.
J.Buhagiar
Jul 28th 2008, 16:47
@ A.Vella.
I am not MLP - but I will indicate where the money lies since you asked.
Countries that believe in Quality & Conformance spend the least on costs, administration and general, are the most effective, get much better results, thrive in the highly competitive world we live today, become richer. Look at Japan and Germany.
So back to malta - Lets take the roads as an example - we are spending Millions.
The problem with roads is - How much do they last? USEFULL LIFE!
You tell me which contractor is asked to guarantee the usefull life of any road?
Tenders should call for –
- Price of construction
- Usefull life geared to this price.
- Price to maintain it throughout the life quoted.
This is called TCO. Whoever wins the tender will have to A) construct it B) maintain it C) through the useful life quoted.
Contractor has one choice - either do it right - or pay for the price of Non-Conformance in maintenance costs.
The way it is - Contractor builds the road (business is business so its done with the least possible cost without compromising geting paid.)
Local Councils - do the maintenance.
I. Brown
Jul 28th 2008, 16:32
Dear Joseph,
I am also taxed well above projections. Maybe we see some material return from that expenditure, at last. also, some statement of some time ago about the government spending too many funds from the EU in our roads network... will you stop saying that? The skin of billboard set up by the ADT on the way to Marsascala, indicating imminent works, used to be white. It has now turned into a lovely stained yellow, and still no roadworks in view.
P Grech
Jul 28th 2008, 16:31
How always the same the MLP they complain that promises broken when it is not true. The PN has not taken away any of its promises but your commentators in here say that they have. This is the usual deception from MLP supporters. and when the budget then is good they say it didnt do enough. Always the same story - but one thing I know. Thank goodness we dont have Alfred Snat Prime Minister because he would have introduced new taxes to cover for the surcharge reduction and he would make us worse off than we are now. So far so good Dr Gonzi! Keep it up and don't let these people who are upset they havent won the election worry you! maybe better they see what they are going to do with Jason Micallef as General Secretary!!
A Daley
Jul 28th 2008, 16:12
A.Vella,
You have literally contradicted yourself in one sentence.
Be reminded what was said before the election, that the economy is strong, and that the Government finances are healthy. PN had thought that Labour was going to be elected and just as they did in 1996, they made sure that they make a bigger mess of the economy, BUT thank God PN are back in office, so now anything that goes wrong is due to PN incompetence and their own inheritance.
A.Vella, you should be reminded that Labour's reduction in surcharge is only 1/3 of what PN has just overspent in the first 5 months of this year.
Enjoy the fact that you too have been taken for a very expensive ride!
Have we got idiots in Malta? Yes we do, some 49% of the electorate!
Now enjoy the next Budget!
You are getting what you deserve - SWAT!
By the way! Don't ask what would Labour do, ask Gonzi! It's his own mess!
J.Dalli
Jul 28th 2008, 14:43
@Dennis Debono...
How simple, wait for the budget in Oct / Nov this year and the same for next year. Buy lubricant and hold tight.
J Borg
Jul 28th 2008, 14:29
May be I know how Mr Debono. From our pockets?
A.Vella
Jul 28th 2008, 14:11
Same old, same old, the MLP must be the number one political party for inconsistency. On one side, you get the wannabe financial minister complaining about government deficits. Whilst a few hours before the new prodigy was complaining that the givernment is not injecting enough money into the economy or easing taxes to make up for the international economic downturn.
Come up with solutions please, so that we will all thrive, rather than going on with the same old tactics.
Dennis Debono
Jul 28th 2008, 14:06
With this trend I cannot see how a surplus budget can be achieved in 2010!